Technology giant HP (HPQ 1.10%) announced today that it is spending $425 million on a buyout of HyperX, which is Kingston Technology's gaming hardware division.

The acquisition is subject to the usual battery of regulatory approvals and waiting periods. The final price tag may be adjusted if Kingston's working capital balances change dramatically. Assuming that all these reviews and conditions are met, the buyout should close in the second quarter of 2021.

A close-up photo of a HyperX Alloy Origins gaming keyboard.

A HyperX gaming keyboard. Image source: HyperX.

The HyperX brand covers a wide range of accessories intended for video gaming systems. The portfolio includes keyboards, mice, headsets, and console accessories, among many other categories. Kingston will hang on to the memory and storage product lines sold under the HyperX name. HP expects the deal to boost the company's adjusted earnings in the first year after closing.

Citing market statistics from custom PC builder WePC, HP estimates that the global peripherals market should be worth $12.2 billion in 2024, with a "disproportionate" growth rate in the gaming portion of that annual revenue opportunity.

The HyperX products will join HP's own gaming hardware portfolio, which mainly consists of gaming-oriented monitors and PC systems. The company has been expanding its OMEN gaming brand recently.

"Our PC gaming continues to surge in popularity," CEO Enrique Lores said in November's fourth-quarter earnings call. "We introduced a range of new OMEN accessories, including the OMEN frequency wireless headset, OMEN Vector wireless mouse, and OMEN Spacer wireless keyboard."